Semi-Strong Form Efficiency of Gold Market : Empirical Evidence from Pakistan

Abstract

Gold has been widely recognized as one of the most precious metals. Its uses are differ widely including being utilized as a standard of exchange and currency, valuable storage for bankers, investors and households and socio-culture status, power % authority symbol. (Blose& Shieh, 1995). In Pakistan no wedding ceremony is complete without gold jewelry which conventionally has become the most luxurious item on the dowry list for parents of brides and also for the potential grooms. (Aslam, 2009). Pakistan has deposits of several minerals. Major reserves of gold and copper in Balochistan'sRikoDiq area have been found in early 2006. The RekoDiq mining area has confirmedappraised reserves of 2 billion tons of copper and 20 million iotas of gold. (brecorder.com). Despite this abundance availability, the gold trade in Pakistan is completely dependent on imported gold and the primary source of is Dubai. All gold imports to Pakistan are presently meant for manufacture jewelry for export and domestic demand is met by recycling. (APGMJA, 2015)